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Statistics Canada just published October inflation data. In an earlier post, I discussed how to read inflation data and that we should expect year-over-year inflation to decline in October. I was incorrect but for the right reason. I expected the monthly inflation rate for October 2022 to be lower than the inflation rate for October 2021. It turned out they are the same such that the annual inflation rate did not change between September and October.

Let’s delve into the data a bit using the charts I like to make to track inflation.

Main measures of inflation

Inflation for All-items remains strong at 6.9% after prices for energy grew in October. Prices have been growing steadily for the main product categories except for energy where prices peaked in June.

Food

Food prices continued in October growing although at a slower rate than in September. Inflation for beef and pork is low at 2.3% and 0.9% respectively. Inflation for butter is high but that comes from prices growing during the winter, likewise for other dairy products. Prices for fresh fruits and for fresh vegetables have slightly declined over the last few months.

Other goods and services

Figure 3 shows that prices are growing at different rates across categories. Inflation for energy products is still strong, except for electricity. Costs for services are growing at a rate slower than general inflation. Clothing prices have been surprisingly resilient and have barely changed over the last year.